Why should you invest in Trust Deeds?

Through our private money loan programs, HFC has created a niche, lending to professional real estate individuals who buy property through distress sales, remarketing them at a profit.  Additionally, HFC offers financing for small to medium builders to purchase land, develop lots and construct model and spec homes.  These loans are made available to investors wishing to own a real estate secured investment earning returns higher than bank Certificates of Deposit.
Of course, all investments have risks associated with them; the same is true of Deeds of Trust.  However, an attractive feature of investing in Deeds of Trust is that most of the risk is compensated for by the security/collateral.  Below are a few steps that we take to ensure you of a safer investment with Hilton Financial Corporation.

Lien Position
Each Deed of Trust is title insured by an Arizona title company.  The title company insures that your Deed of Trust is recorded into the represented first lien position.
Fire Insurance
If the Deed of Trust is secured by an improved property, the borrower is required to keep fire insurance in an amount to cover the replacement of the improvements.
Escrows
Your purchase will be handled through an Arizona title company.  Your investment check is made payable to the title company.  Your escrow instructions instruct the title company to use your funds only when they can record the Assignment of Beneficial Interest and Endorse the Title policy into your name.
Payments
Each Deed of Trust is set up for collection through Hilton Financial Corporation as collection agent.  The borrower makes all payments to the collection agent, who in turn remits the payment directly to you.  Additionally, the collection agent is responsible for all government reporting, holding original documents and issuing payoff and status statements.
Loan Value
Each Deed of Trust is secured by a parcel of real estate.  This real estate has value to it; an independent appraisal is obtained for each parcel of real estate.  A copy of the appraisal is included for review in your trust deed information package. The Amount HFC lends to a borrower against a parcel of real estate is dependent upon several factors, such as borrower strength, property type and location.

Additionally, Investing in Deeds of Trust offers these benefits:

Higher than normal returns (10 - 13%) secured by collateral of greater value than your investment;
Short term (1 - 5 years);
Payments are collected through Hilton Financial Corporation.  No need to have direct communication with borrowers;

Title insurance provided to insure your Lien Position;

A shorter foreclosure time than most mortgages, makes Trust Deeds more Investor friendly; &

 

 

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